### Q4 2025 # Architecture Industry Insights This quarterly report highlights the trends and strategies architects need to address today’s challenges. From AIA leadership updates to key market data, it provides actionable, must-read insights to guide your practice and decisions. ## Topics ##### Q4 2025 National Billings ##### Month By Month Indicators ##### Regional Trends & Sector Snapshot ##### Economic Insights ##### Where to Watch in 2026 ##### Q4 Summary Curated by Ed Akins II, AIA, LEED AP Principal Architect, cove --- ### Q4 2025 National Billings FIRM BILLINGS REMAIN SOFT, YEAR ENDS WITH LIMITED IMPROVEMENT October: 47.6 — slight improvement following September’s low, driven by a temporary spike in inquiries November: 45.3 — billings and design contracts fell to their lowest levels of the year December: 48.5 — Billings continued to decline as year-end uncertainty, stalled projects, and financing constraints weighed on firm activity Architecture firm billings remained below the 50 threshold throughout Q4, signaling continued contraction in design activity as firms closed out the year. While October showed a modest uptick from September lows, momentum failed to carry through November and December, reinforcing a pattern of cautious clients and delayed decision-making. OVERALL: Q4 points to a market holding steady but hesitant, as interest continues to outpace contracts and firms enter 2026 with uneven demand and limited visibility. --- ### Month By Month Indicators Design Contracts | 47.1 Project Inquiries | ~55 Billings | 47.6 Design Contracts | 47.1 KEY INDICATORS AT A GLANCE November: Design Contracts | 42.7 Project Inquiries | ~51 December: Billings | 48.5 Design Contracts | ~47 --- ### Regional Trends & Sector Snapshot REGIONAL TRENDS Midwest remains the primary area of stability as other regions stay soft. Firms in the Midwest continued to post modest growth through Q4, while the West, Northeast, and South remained below expansion levels, reflecting ongoing financing constraints and cautious development activity. #### SECTOR SNAPSHOT No sector breaks into growth; institutional nears stability. In Q4 2025, business conditions remained soft across sectors. Institutional work continued a gradual climb toward stability (48.7), while Commercial and Residential activity softened, reinforcing a year-end slowdown rather than a broad-based recovery. --- ### Economic Insights ECONOMIC UNCERTAINTY CONTINUES TO WEIGH ON PROJECT STARTS. As a result, firms increasingly focused on renovation, repositioning, and adaptive reuse projects, which remain more viable under cautious lending and uncertain market conditions. --- ### WHERE TO WATCH IN 2026 Midwest firms are likely to remain the earliest indicator of stabilization heading into 2026. Institutional work may continue its gradual move toward balance, supported by public-sector and infrastructure funding. Renovation, repositioning, and adaptive reuse projects are expected to remain the most reliable sources of near-term work. Firms prioritizing operational efficiency, flexible staffing, and data-driven forecasting are better positioned to navigate continued uncertainty. --- # In Summary ## AIA ABI (Q4) – Soft Conditions Persist as the Year Closes Architecture billings remained below 50 throughout Q4, with November and December closing the year at the lowest levels since early 2025. The Midwest continued to outperform, posting modest growth, while the West and Northeast remained the weakest regions as financing constraints and delayed projects persisted. Sector trends showed limited movement: Institutional work edged closer to stability, while Commercial/Industrial and Residential activity softened into year-end. **Firms Pivot Toward Renovation and Efficiency** Client indecision, insufficient project budgets, and financing challenges continued to delay or stall new work. Renovation, repositioning, and adaptive reuse projects remained the most consistent sources of billings amid cautious lending conditions. Firms increasingly emphasized operational efficiency, selective staffing, and tighter pipeline management entering 2026. ## What People Are Watching Economic visibility remains limited due to uneven job growth, persistent inflation pressures, and delayed data availability. Private-sector development is expected to remain uneven, while public-sector and renovation-driven work may provide relative stability. Firms focused on flexibility, diversification, and long-term planning are best positioned to navigate continued uncertainty. --- # Meet the Expert ## Ed Akins II, AIA ### cove Principal Ed Akins II, AIA is an architect and educator with a passion for sustainable design and innovative thinking. A former Sustainable Fellow and Interim Chair of the College of Architecture and Construction Management at Kennesaw State University, he holds a Master of Architecture from Georgia Tech and has earned multiple industry accolades.